Start of a bull run for gold?
Since the beginning of 2016, gold price had seen a meteoric rise of 21%. It rose from USD1061 to USD1292 per troy ounce at this point of writing, representing an incredible come-back by the yellow precious metal. Is this the start of a bull run for gold?
Traditionally seen as a safe asset class, the surge in gold price is due to the poor economic climate. The combination of oil crisis, China stock market crashes, negative interest rate policy by Bank of Japan and weak global growth currently make gold an attractive commodity for investors to hold. After all, it has been regarded as a safe haven for decades during economic downturns and sky-high inflation.
If you are one of those who think that the current market climate is doing “fairly okay”, then perhaps you have not been following the news or you must be an extremely optimistic person. The matter of fact is that many businesses are finding it challenging to operate under the current climate and the global market is basically waiting for a Black Swan event to implode. By then, it will be too late for you to liquidate your stocks and transfer the fund to gold because very often, the stock market moves very swiftly.
Like all investments, you must adopt a contrarian approach in order to make money. Gold has fallen from a high of USD1825 per troy ounce in August 2011 and it is likely to be at an inflection point of an upward curve. Thus, in my view, the best time to buy physical gold bullion is now because it is in an upward trending cycle. In fact, local finance blogger, Dave, predicted that gold will storm to USD2400 level this year. A very bold prediction I must say but then again, it doesn’t matter he is right or wrong. The thing to ask yourself is whether how much you stand to gain if it really happens.
Every investors know that the market works in cycles and for the past four years, gold has undergone a massive correction in price. Therefore, you certainly don’t want to wait until the peak and then enter the market because the downside risk will be higher. 2016 could be the turning point for gold and you certainly don’t want to look back in regrets for missing this window of opportunity.
Many people wonder where to buy physical gold in Singapore from reliable bullion dealers at competitive prices. In Singapore, you can choose to buy gold and silver bullion from BullionStar, one of the largest bullion dealers with more than 370 bullion products. The company has a unique retail shop, vault and advanced online system providing a one-stop shop for wealth builders to view, online purchase, collect, deposit, store, value, sell, audit or physically withdraw bullion.
BullionStar also offers customers their own minted gold and silver bars with zero spread. They have commissioned world-renowned LBMA-approved Swiss gold refiner Argor-Heraeus to produce these stylish and unique minted 100 gram 99.99 % purity gold bars.
Below are some gold bullion offered by BullionStar that are worth buying:
It is the long weekend and BullionStar is open on every Saturday from 10am to 2pm. So why don’t you visit their bullion shop and take a look? After all, Mother’s Day is just around the corner. So buying her a gold bar or coin is one of the best gifts during this uncertain time.
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Magically yours,
SG Wealth Builder
